Electric vehicle being charged January 17, 2019

Global automakers are planning a $300 billion surge in spending on electric-vehicle technology over the next five to 10 years, with nearly half of the money targeted at China, accelerating the industry’s transition from fossil fuels and shifting power to Asian battery and EV technology suppliers.

The unprecedented level of spending – much of it by Volkswagen Group – is driven in large measure by government policies adopted to cut carbon dioxide emissions and will extend technological advances that have improved battery cost, range and charging time to make EVs more appealing to consumers, according to an exclusive Reuters analysis of public data released by those companies.

China for decades played catch-up to German, Japanese and American automakers, which dominated internal combustion vehicle technology. Now, China is positioned to lead EV development, industry executives say.

“The future of Volkswagen will be decided in the Chinese market,” said Herbert Diess, CEO of VW, which has decades-old joint ventures with two of China’s largest automakers, SAIC and FAW.

Speaking earlier this week to a small group of reporters in Beijing, Diess said China “will become one of the automotive powerhouses in the world.”

“What we find (in China) is really the right environment to develop the next generation of cars and we find the right skills, which we only partially have in Europe or other places,” he said.

Diess added, “We have very clear policies established here in China. Policymakers and regulators are requiring” a shift to EVs.

As China and other countries place more restrictions on conventional gasoline and diesel engines, auto companies have accelerated the shift to electrification. A year ago, global automakers said they planned to spend $90 billion on EV development.

The $300 billion that automakers have earmarked to put EVs into mass production in China, Europe and North America is greater than the economies of Egypt or Chile. Almost one-third of the industry’s EV spending total, about $91 billion, is being committed by the VW Group, which is aggressively trying to distance itself from the diesel scandal, which has cost it billions in penalties and legal settlements.

FULL ARTICLE: VW, China spearhead $300 billion global drive to electrify cars

Latest News &
Announcements

All our latest news, speeches, announcements, presentations and media releases from Orocobre Limited. The best way to stay up to date is to sign up for our newsletter.

  • Nobel Prize Winner Says Battery Recycling Key to Meeting Electric Car Demand

    Nobel Prize Winner Says Battery Recycling Key to Meeting Electric Car Demand

    Recycling batteries is the key to securing enough raw materials to power the surge in electric vehicle demand, according to a winner of the Nobel Prize in Chemistry. “The point is whether EV batteries can be recycled,” said Akira Yoshino, a Japanese chemist who was awarded the prize with two others for their pioneering work... View Article
  • Boeing and Porsche team up to develop flying electric car

    Boeing and Porsche team up to develop flying electric car

    Porsche and Boeing have signed a Memorandum of Understanding to explore the premium urban air mobility market and the extension of urban traffic into airspace. With this partnership, both companies will leverage their unique market strengths and insights to study the future of premium personal urban air mobility vehicles.
  • Chemistry Nobel Hails Work on Batteries That Changed Society

    Chemistry Nobel Hails Work on Batteries That Changed Society

    The Nobel Prize in Chemistry was awarded to a trio of pioneers of the modern lithium-ion battery, which is revolutionising everything from mobile phones to the future of the global car industry. The prize went to M. Stanley Whittingham, a British-American professor at the State University of New York at Binghamton; Japan’s Akira Yoshino, of... View Article

Be the first to know.
Subscribe Now.

We will never sell or share this information to anyone. Privacy Policy
© 2019 Orocobre Limited Pty Ltd